Example: $308,000 (Loan) + $50,000 (Cash) = ⚠️ Important Considerations
A bank's pre-approval letter is the only way to "lock in" your official buying power before shopping.
The "gold standard" to avoid Private Mortgage Insurance (PMI). 3. Credit Score & Interest Rates
Multiply gross income by 0.36 (36%) and subtract existing monthly debts.
Keep 1%–3% of the home's value in savings for annual repairs.
Result in higher rates, which raises your monthly payment and lowers the total house price you can afford. 🧮 How to Calculate Your Power To get a realistic number, follow these steps: Step 1: Determine Monthly Income Take your annual salary and divide by 12. Example: $100,000 / 12 = $8,333/month Step 2: Apply the DTI Limit
Your monthly mortgage payment (principal, interest, taxes, insurance) should not exceed 28% of your gross monthly income.
Example: $308,000 (Loan) + $50,000 (Cash) = ⚠️ Important Considerations
A bank's pre-approval letter is the only way to "lock in" your official buying power before shopping.
The "gold standard" to avoid Private Mortgage Insurance (PMI). 3. Credit Score & Interest Rates
Multiply gross income by 0.36 (36%) and subtract existing monthly debts.
Keep 1%–3% of the home's value in savings for annual repairs.
Result in higher rates, which raises your monthly payment and lowers the total house price you can afford. 🧮 How to Calculate Your Power To get a realistic number, follow these steps: Step 1: Determine Monthly Income Take your annual salary and divide by 12. Example: $100,000 / 12 = $8,333/month Step 2: Apply the DTI Limit
Your monthly mortgage payment (principal, interest, taxes, insurance) should not exceed 28% of your gross monthly income.